Vehicle Networking Market Size - By Vehicle, By Connectivity, By Application Analysis, Share, Growth Forecast, 2025 - 2034

Vehicle Networking Market Size

The global vehicle networking market size was valued at USD 1.8 billion in 2024 and is projected to grow at a CAGR of 10.4% between 2025 and 2034, driven by advancements in connected car technologies, including the integration of Internet of Things (IoT) and 5G networks, which enable real-time data transmission and improved communication between vehicles and infrastructure. The growing demand for autonomous vehicles is another key factor, as seamless vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication are critical for safety and efficiency.
 

Additionally, the increasing emphasis on vehicle safety, navigation, and infotainment systems accelerates the adoption of networking solutions. Regulatory initiatives aimed at enhancing road safety and reducing traffic congestion also contribute to market growth. Consumer demand for smarter, more personalized in-car experiences further fuels the expansion of the market. Lastly, the rise of electric vehicles (EVs) and smart city initiatives are creating new opportunities for vehicle networking technologies.
 

For instance, according to GMI, Automotive Vehicle-to-Everything (V2X) Market size surpassed over USD 2.5 Billion in 2022 and is anticipated to grow at 25% CAGR from 2023 to 2032 owing to the development of smart cities and Intelligent Transportation Systems (ITS). Thus, this surge in adoption of connected vehicles is anticipated to generate demand for vehicle networking components.
 

Another significant driver of the vehicle networking market is the growing emphasis on vehicle diagnostics and predictive maintenance. Advanced networking technologies enable continuous monitoring of vehicle health, allowing for real-time detection of potential issues. This reduces downtime, lowers maintenance costs, and enhances vehicle performance. As a result, both consumers and fleet operators are increasingly adopting connected vehicle solutions for better reliability and efficiency.
 

Vehicle Networking Market Trends

An ongoing trend in the vehicle networking industry is the increasing integration of 5G technology, enabling faster, more reliable communication between vehicles and surrounding infrastructure. This trend is crucial for supporting advanced driver-assistance systems (ADAS) and autonomous vehicles, which require low latency and high-speed data transfer. Another trend is the rise of over-the-air (OTA) updates, allowing automakers to remotely update vehicle software and improve features without requiring physical visits to service centers.
 

Additionally, there is growing adoption of Vehicle-to-Everything (V2X) communication, enhancing safety and efficiency by enabling vehicles to interact with traffic signals, pedestrians, and other road users. The shift towards electrification is also influencing vehicle networking, as EV rely on integrated communication systems for charging management. Finally, the focus on data privacy and cybersecurity is intensifying, with increased efforts to secure connected vehicles from potential cyber threats.
 

For instance, In January 2024, Jingwei Hirain introduced a new 5G T-Box product featuring the latest Qualcomm 5G chips. Designed for a popular all-electric vehicle model, this product is anticipated to enter mass production by year’s end. Utilizing the Qualcomm SA522, which debuted in early 2023, it supports functions such as Gigabit Ethernet, V2X, high-precision positioning, WiFi6, CAN FD, Dual SIM Dual Standby (DSDS), and RTMP audio transmission. This enables a range of advanced telematics services for both intelligent driving and infotainment, offering enhanced platform scalability.
 

One key challenge in the vehicle networking market is ensuring data security and privacy. As vehicles become more connected, the amount of data exchanged between vehicles, infrastructure, and cloud systems increases significantly, making them vulnerable to cyberattacks. Protecting sensitive user data, such as location, driving habits, and vehicle diagnostics, is critical to maintaining consumer trust. Additionally, implementing robust cybersecurity measures across diverse platforms, systems, and devices remains complex and costly. Addressing these challenges is crucial for the widespread adoption of connected and autonomous vehicles.
 

Vehicle Networking Market Analysis

Based on vehicle type, the market is divided into PV, LCV, HCV and AGV. In 2024, the PV segment accounted for over 50% of the market share and is expected to exceed USD 2.5 billion by 2034. The Passenger Vehicle (PV) segment dominates the vehicle networking market due to the high demand for advanced in-car technologies that enhance safety, convenience, and driving experience. Consumers increasingly seek connected features such as infotainment systems, navigation, and real-time diagnostics, driving the adoption of vehicle networking in PVs.
 

Additionally, the growth of autonomous driving technologies and advanced driver-assistance systems (ADAS) is particularly focused on passenger vehicles, which require seamless communication and data sharing. OEMs are integrating IoT, V2X, and 5G connectivity to meet consumer expectations and regulatory standards. Furthermore, the expanding electric vehicle (EV) market, which is heavily represented by passenger vehicles, is fueling further growth in connected vehicle technologies. These factors combined make the PV segment the largest and fastest-growing part of the market.
 

Based on connectivity, the vehicle networking market is categorized into CAN, LIN, RF, FlexRay, Ethernet, and MOST. The CAN held above 25% of the market share in 2024, due to its robustness, reliability, and cost-effectiveness. It is well-suited for real-time data transmission in vehicles, particularly for critical systems such as engine control, braking, and safety features. CAN’s ability to function in harsh automotive environments, with high electromagnetic interference, makes it ideal for automotive applications.
 

Additionally, its widespread adoption in legacy systems and long-term industry standardization contributes to its dominance. As a result, CAN remains a core technology for communication in both traditional and connected vehicles.
 

The U.S. vehicle networking market accounted for 90% of the revenue share in 2024 and is expected to exceed USD 1.5 billion by 2034, owing to its strong automotive industry, which is home to leading manufacturers like General Motors, Ford, and Tesla, driving innovation in connected vehicle technologies. The country has a high adoption rate of advanced technologies, including autonomous vehicles, electric vehicles, and 5G, which rely heavily on vehicle networking solutions.
 

Significant investments in research and development, along with government initiatives supporting smart infrastructure and transportation, further bolster market growth. Additionally, the U.S. benefits from a mature market for telematics, infotainment, and ADAS, which fuel demand for connected car solutions. The presence of leading tech companies, including Qualcomm and Intel, accelerates the development of vehicle networking components. These factors collectively position the U.S. as a dominant force in the global market.
 

The APAC vehicle networking market is rapidly growing, driven by strong automotive manufacturing in countries like China, Japan, and South Korea. The increasing demand for electric vehicles (EVs) and autonomous driving technologies is a major factor, alongside government initiatives promoting smart cities and infrastructure. The region's focus on 5G integration and IoT adoption in vehicles further accelerates market growth. With large consumer markets and technological advancements, APAC is expected to continue dominating the global market.
 

Europe is a key player in the vehicle networking market, driven by stringent safety regulations, environmental standards, and the increasing adoption of electric vehicles. The region is home to major automotive manufacturers like Volkswagen, BMW, and Daimler, which are pushing for ADAS and autonomous driving technologies. European governments are investing in connected infrastructure, supporting the development of smart cities. The demand for high-performance vehicle networking solutions in premium vehicles is also contributing to the market's growth.
 

Vehicle Networking Market Share

Microchip Technology Inc, NXP Semiconductors, Toshiba Corp. collectively held a substantial market share of over 45% in the vehicle networking industry in 2024. Microchip Technology Inc., NXP Semiconductors, and Toshiba Corp. dominate the vehicle networking market due to their advanced semiconductor solutions, which are integral to automotive connectivity. These companies offer a wide range of automotive-grade microcontrollers, processors, and communication chips that enable reliable and secure data transfer in vehicles.
 

Their strong focus on research and development, along with extensive experience in the automotive sector, positions them as leaders in vehicle networking technology. Additionally, they are at the forefront of innovations such as 5G, V2X, and ADAS, which are critical for the next generation of connected and autonomous vehicles. Their global presence and strategic partnerships with automakers further enhance their market dominance.
 

Vehicle Networking Market Companies

Major players operating in the vehicle networking industry are:

• Broadcom
• Continental
• ElectRay
• Elmos Semiconductor
• Infineon
• Marvell Semiconductor
• Melexis NV
• Microchip Technology
• NXP Semiconductors
• Toshiba
   

Vehicle Networking Industry News

• In January 2024, Jingwei Hirain introduced a new 5G T-Box product featuring the latest Qualcomm 5G chips. Designed for a popular all-electric vehicle model, this product is anticipated to enter mass production by year’s end. Utilizing the Qualcomm SA522, which debuted in early 2023, it supports functions such as Gigabit Ethernet, V2X, high-precision positioning, WiFi6, CAN FD, Dual SIM Dual Standby (DSDS), and RTMP audio transmission. This enables a range of advanced telematics services for both intelligent driving and infotainment, offering enhanced platform scalability.
   
• In December 2023, Magna announced its initiative to enhance ADAS capabilities by joining the NorthStar 5G innovation program, a collaboration between Telia Sweden and Ericsson. This partnership involves setting up a private 5G network at Magna’s test track in Sweden, designed to support trials of advanced vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) technologies. This move reflects the trend towards integrated and multifunctional solutions, as it aims to improve vehicle safety and advance autonomous driving through a unified, high-performance connectivity platform.
   

The vehicle networking market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Bn/Mn) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• PV
• LCV
• HCV
• AGV

Market, By Connectivity

• CAN (Controller Area Network)
• LIN (Local Interconnect Network)
• RF (Radio Frequency)
• FlexRay
• Ethernet
• MOST (Media Oriented Systems Transport)

Market, By Application

• Powertrain
• Safety
• Body electronics
• Chassis
• Infotainment

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa